Offset Mortgage & 0% Balance Transfer

[Deleted User]

Hi. First post!
Would anyone like to offer guidance on whether this seems a sensible scenario?
If I have an offset mortage product currently at 2.24%, and have seen a 0% balance transfer product (1 year term) with a 1.49% fee.... can you confirm that I dont lose out, by taking funds from the balance transfer and placing it in my offset mortgage for the period of the 0% deal?
Im happy to pay the credit card minimum payment, as I would have paid a similiar amount extra to my offset mortgage per month, but this way seems like I get a larger amount offsetting my mortgage up front.
Does this make sense? or am I being an idiot somewhere along the line?
Thanks

anselld

Yes, it works, but is it worth it for a small percentage difference? There are better BT cards out there with lower fees/longer terms.

Watch out for ...
(1) You pay the BT fee up front on the whole amount but the offset decreases over the term as you pay the minimum amount monthly
(2) You don't get the full 1 year term because there is some delay at the start withdrawing the money and you need to pay off before the end to avoid interest
(3) Work out how to get the cash out. Most BT cards don't allow direct transfer to bank, but there are ways round this.

[Deleted User]

on a loosely related topic. Are credit card companys obliged to refund credit balances on request?

anselld

[quote=[Deleted User];70590369]on a loosely related topic. Are credit card companys obliged to refund credit balances on request?[/QUOTE]

Not obliged, but some do. Pobably find out which ones in the credit card stoozing board.

You can get a Halifax Clarity Card which has zero fee on cash withdrawal. BT a positive balance to it and then withdraw in cash at £500 per day.

Thrugelmir

[quote=[Deleted User];70590369]on a loosely related topic. Are credit card companys obliged to refund credit balances on request?[/QUOTE]

They may return the funds. As balance transfers are not cash draw downs. You won't be the first person to think they've found a loophole.

amnblog

This idea comes up on here every couple of months and is best avoided.

How much are you going to save? 0.75% of £10,000?

AnotherJoe

You'd be better if you could be bothered with the faff, to take the money and put it in a high interest rate saving account. You'd get much better returns than on your mortgage.

getmore4less

The glory days of Stoozing are over.

With a 2% min payment you are going to be saving around £5py per £1000 on that 1 year deal

There are some better longer term deals that will do a bit better

0% purchase cards will probably net a bit more if you have enough spends you can put on it